An extensive remodeling project began in
the Hwy. 14 building in September. Initially, it had been hoped
that the bar and grill area would be opened in December, with
remodeling of the banquet hall to follow. But Daniels said it was
decided later to complete remodeling on both the banquet room and
bar area before opening.

We didnt want to be pounding
in nails after we were open, said Daniels.

The remodeling still has a ways to
go, Daniels said. Work needs to be finished laying carpet,
re-finishing the banquet rooms dance floor, and installing
kitchen equipment.

The new sports bar will have seating for
about 80, while the banquet hall will be able to accommodate up
to 450 people. To date, Shetek Bend has booked upwards of
40 large group events for the ballroom, Daniels said.

The first two large group events that
have been booked for the banquet room are a Valentine dinner for
the Tracy Lions Club, and a Tracy education banquet in
February.

Shetek Bend has hired its first two
employees. Lezlee Wells (Prouty) of Tracy will be the bar
manager. The food service manager will be Anna Kretsch of Revere.

The bar and grill will have a menu that
will include steaks and burgers, Daniels indicated. Food for
banquets will be catered in.

Many local partners

To date, Daniels said, 42 people who
have invested money in the enterprise. Almost all of the partners
are local people, or individuals with local ties.

This really is a unique
enterprise, Daniels said. The number of people that
have been willing to get involved and invest money in this and
make this go is a statement of what people think of this
community and what they are willing to do to make this thing
go.

A number of the partners, Daniels added,
have invested sweat equity in the remodeling. Daniels said he has
been very pleased with the craftsmanship and know-how of many of
the people working on the project.

Former Servicemens Center

The Tracy American Legion built the
Shetek Bend building in the late 1970s. The Legion operated the
Tracy Servicemens Center until the 1990s, hosting many
banquets, dances and large group events. The Legion sold the
property to Todd and Harold Radke, who relocated Tracy Minntronix
operations to the site. Dean and Jeff Salmon purchased the
facility after Minntronix closed its Tracy operations in 2004.
The Salmons, in turn, sold the property to the Shetek Bend group
this summer.

DM&E plan moves closer
to construction

The long-discussed Dakota, Minneota
& Eastern Railroad improvement plan has gained momentum with
a recent ruling from a federal agency.

The Surface Transportation Agency
affirmed earlier decisions that the project could go forward. The
three-member panel ruled, in effect, that environmental-related
issues raised by opponents of the project are not significant
enough to stop the proposed $2.5 billion upgrade. Opponents of
the board decision have 30 days to appeal.

The DM&E project, which was proposed
eight years ago, would be the largest railroad construction
project in the U.S. in about 100 years. Plans call for rebuilding
600 miles of existing track in South Dakota and Minnesota,
upgrading 250 miles on the affiliated Iowa Chicago & Eastern
Railroad, upgrade 150 miles of track between Wall, SD., and
Colony, WY., and building 262 miles of new track from coal fields
in the Powder River Basin of Wyoming.

Advocates say that an upgraded DM&E
will be benefit agricultural shippers, improve grain markets, and
spark economic development opportunities along the line. Utility
plants in the Midwest would burn the low-sulfur coal excavated
from Powder River Basin to generate electricity.

Most communities along the DM&E,
including Tracy, Walnut Grove and Balaton, have signed agreements
with the railroad supporting the project.

Rochester and Mankato have opposed the
railroad expansion, unless bypasses are built around the cities.
Representatives of the Mayo Clinic in Rochester have opposed the
DM&E expansion on existing trackage because of the noise,
vibration, and congestion that increased train traffic would
bring.

A bill passed by Congress last year
makes the DM&E eligible to apply for $2.5 billion in federal
loans to finance the construction.

The DM&E construction would be
accomplished over a three-year period. DM&E President Kevin
Schieffer said last week that if final federal approval is
granted soon, it would still be possible for some construction to
occur in 2006.

Wind farm plan has big
response

By Valerie Scherbart Quist

A group seeking to build up to 60 wind
turbines near Tracy has raised nearly half a million dollars in
stockholder equity.

Shetek Wind, LLC has raised $470,000
from nearly 40 landowner-investors in the wind farm
projects targeted construction area, said Dennis Fultz of
Shetek Wind, LLC and Outland Renewable Energy, a group dedicated
to aiding landowner groups that want to put together wind
projects.

The bulk of the project is expected to
be located in Monroe and Custer townships in southern Lyon County
and Shetek and Lake Sarah townships in Murray County. The area
includes 32 sections of land running from near Balaton to
southeast of Garvin.

Fultz said he was pleased in the
response from potential landowner-investors. There were 128
landowners/residents in the targeted wind farm area. The
landowner-investors who have signed on to the project represent
about 40 percent of the land in the target area.

Potential investors were approached
privately. The period for investors to sign on was closed in
December.

The project was initiated by Outland
Renewable Energy, a group of eight people that includes five area
farmers. Local members of the group are John Nelson of Garvin,
Bernard and Dennis Fultz of Tracy, and Larry and Elton Goeman of
Jeffers. Also involved are wind energy developers Patrick
Pelstring, Jack Levi, and Jay Allsup.

Outland Renewable Energy was responsible
for completing a computerized wind study and environmental
permitting study, initiating a transmission study, and contacting
potential buyers of the power and financiers.

After we did those steps, we knew
we had a viable project that we could take to the
landowners, Fultz said. About $175,000 has been spent on
those initial steps. The transmission study will cost
approximately $200,000.

Board is elected

Once the stock offering period for
investors was closed, a board of governors was elected. Elected
to the board were Rick Anderson, Matt Surprenant, John Nelson,
Ron Schwartau, and Jay Allsup.

Fultz said it is possible that an
additional stock offering will be opened up later on to raise
some additional dollars for the project development. Local
investors will own approximately 60 percent of the project, Fultz
said, with Outland Renewable Energy owning the balance of the
project.

The Shetek Wind, LLC wind farm will
likely benefit from the states Community-Based Energy
Development (C-BED) legislation, said Fultz. The concept behind
C-BED is to keep ownership of wind projects local, with the goal
that profits from such projects will remain in Minnesota. The
Minnesota Public Utilities Commission mandates that utility
companies purchase a certain amount of their power from C-BED
qualified entities. Shetek Wind, LLC meets the criteria to be a
C-BED qualified entity.

A similar wind power project initiated
by Outland Renewable Energy near Jeffers has sold 50 megawatts of
its power to Xcel Energy through C-BED.

We envision the same thing
happening here, Fultz said. Construction for the Jeffers
project, which will be 24 of the largest wind turbines in
Minnesota, is set to begin in the summer of 2006.

Construction in phases

Fultz said preliminary studies have
shown the potential to produce 250 megawatts of electrical power
in the Shetek Wind target area. The transmission study is
examining what changes will have to be made to the transmission
system to handle 150 megawatts that the project will produce from
60 or more wind turbines. The power produced would be enough to
provide power to about 150,000 homes.

Fultz said the turbines may not all be
built at one time. It is likely that they will be built in
phases, depending on the blocks of power the utility wants to
buy.

Engineers will need to determine the
tower location. Factors will include how to maximize the
electrical energy output in the targeted area while keeping
construction costs within reason. Which turbines are constructed
first also depends somewhat on where a substation for the project
will be built, and where the system would interconnect to the
transmission system. It is likely that construction would start
close to the substation.

Fultz said Shetek Wind, LLC is in the
process of securing the wind rights from the landowners in the
area. The limited liability corporation has already made offers
to two utility companies and is awaiting their response.
Financing and turbine supply have been tentatively secured.

Were ready to build when
transmission capacity becomes available, Fultz said.
As soon as we get transmission and a buyer, we are ready to
go. Were well along in that process, which typically takes
two to three years to complete.

Transmission lines needed

The biggest uncertainty, he said, is
transmission. He said a definitive answer on the transmission
study isnt expected until the end of 2006.

The construction of an MET tower, or
possibly even two, will likely be completed this summer. The
approximately 200-foot-high tower will record wind speed and
direction, temperature, and barometric pressure.

The tower will confirm what the
computer wind analysis has indicated, Fultz said.

He said that when completed, the project
costs could be in excess of $200 million.

Long-range opportunity

The Shetek Wind, LLC wind farm
isnt the only project currently being pursued by Outland
Renewable Energy. The group is in the process of stock offerings
amounting to $1.5 million to continue development of other wind
farms in various stages of development in other parts of the
country. Fultz said he would like to see other people from
Southwest Minnesota become investors in the company.

Outland Renewable Energy is also
exploring other renewable energy resources, such as biomass to
energy and, in time, hydrogen, Fultz said.

High School studies to
continue

Estimated cost of multi-use
facility is $4 to $5 million

By Valerie Scherbart Quist

A new gymnasium or theater complex would
no doubt be an asset to Tracy Area Public Schools and the
community of Tracy. But would the district taxpayers support such
a project?

Thats the question District 417
board of education members asked themselves Monday. The board
reviewed rough estimates for two building project possibilities
from district Superintendent David Marlette.

The first project would include the
construction of a 100x100-foot game gymnasium, 70x100-foot
practice gymnasium, boys and girls locker rooms, a
50x50-foot wrestling room, boys and girls bathrooms,
weight room and coaches rooms, equipment storage rooms, and
remodeling the existing gymnasium facility into a theater.

Marlette estimated the cost of the
building project at about $4,446,000.

A second option would include a
100x100-foot game gymnasium, 8,000-square-foot theater,
boys and girls locker rooms, 50x50-foot wrestling
room, boys and girls bathrooms, weight room and
coaches rooms, and equipment storage rooms. Under this
scenario, the existing gymnasium would be kept as a practice
room.

Marlette estimated the cost of this
building option at about $4,511,500.

The superintendent emphasized that the
figures were a very rough estimate, but felt the cost would be
between $4 million to $5 million for either construction project.

It gives us a starting point to
start talking, he said. I dont know if this is
something people would like to see, but we wont know until
we start to talk about it.

Marlette added that whether the building
project moved forward would be up to the taxpayers through a
referendum.

Board members questioned whether the
community could join in to raise part of the money so the whole
amount wouldnt have to come from a referendum. The
superintendent felt a community and district project could be
blended together very easily.

Whats the next step?

Marlette said there were several
options, including conducting a survey, asking for community
input, and having a public meeting on the issue.

I think we just need to start
talking, he said.

He said most school districts the size
of Tracy have more than one gymnasium as well as a theater.

Its a tough sell just to
say, We are going to build a gym, he added.

Board member Chris Schons recommended
getting together with the different entities involved before any
further decisions are made. Board member Eric Fultz agreed that
it would be a good idea to get wish lists from the groups that
would benefit from the new building, get harder numbers, and then
go to the public.

Marlette agreed. We have to narrow
the scope first, he said.

The board agreed that it would invite
various groups, from both the athletic and theater ends of the
spectrum, to a meeting next month. The meeting will begin at 6
p.m. on Monday, Feb. 13. The regular school board meeting will
follow at 8 p.m.

City settles most pool
claims for $1.2 million

Efforts continue to recover
additional $556,560

By Seth Schmidt

The City of Tracy will receive
$1,206,206 to settle most of the citys Aquatic Center
litigation claims.

Legal counsel Jim Kerr announced the
out-of-court settlement at a Tracy City Council meeting Monday.
Council members had agreed to the settlement terms at a closed
meeting Dec. 12.

 USAquatics, the chief designer,
engineer and construction manager of the original aquatic center.

The City has not reached a settlement
with United Fire and Casualty Co., one of USAquatics
insurers. The City of Tracy, through its settlement with
USAquatics, retained the right to seek an additional $556,560 in
damages from United Fire & Casualty. The City of Tracy vs.
United Fire & Casualty casewhich involves the question
of what the insurance companys policy with USAquatics
coveredwill likely be heard in Lyon County District Court.

Council members made no comments after
Kerr read the settlement statement. After the meeting, Mayor
Steve Ferrazzano was asked for his reaction to the settlement.

Its a good resolution,
Ferrazzano said.

Asked about the settlement Tuesday, City
Administrator Audrey Koopman said that the out-of-court agreement
came after mediation sessions involving the parties. She said
that the citys lead attorney in the case, Jeffrey Coleman,
recommended the settlement to the council.

The out-of-court settlement, Koopman
said, offered the advantage of an immediate monetary award for
the city, and an end to the uncertainty of protracted litigation.
Had the city pressed forward with its entire aquatic center
lawsuit in hopes of obtaining a larger monetary award, Koopman
said there was no guarantee that a jury would rule in favor of
the city. Even if the city ultimately won a larger settlement in
court, she said, an appeal process could have delayed any payment
to the city.

The settlement does not include any
admission of negligence by any of the parties, according to
Koopman. She also said that how much of the total settlement was
being paid by each of the four parties would not be released.

The administrator said that she expects
that the City will receive the $1.2 million within the next week.

The settlement agreement will result in
the dismissal of all aquatic center related claims involving the
City of Tracy, Olympic Pools, USAquatics, Mid-State Surety &
Allman & Associates in Lyon County District Court. Two cases
in Hennepin County District Court related to insurance coverage
issues will also be dismissed.

$1.5 million referendum

City of Tracy voters approved a $1.5
million bond referendum to build the Sebastian Park aquatic
center in 2000.

Demolition of an outdoor pool that had
served the city since 1951 began in August of 2001, and
construction on the new pool facility began that fall. The new
aquatic center included four distinct pool areas, three large
water slides, a refurbished bathhouse and a new concession
building. The new aquatic center opened in July of 2002.
Construction costs totaled about $1,855,000, higher than the
original estimate of $1.5 million.

The pool operated for one full summer in
2003. But water leakage was noticed at the pool that summer,
causing operating costs to be more than expected. A significant
amount of cracks were observed in the pool shell.

In the fall of 2003, city council
members ordered a series of tests be conducted on the pool
structure. Core samples were drilled into the pools
concrete shell, and the pools Diamondbrite finish coat was
jackhammered off during the testing.

In the fall of 2003, consulting
engineers reported to city officials that they had discovered a
significant numbers of flaws in the aquatic center, including
foreign objects and voids in the pools concrete shell.

The aquatic center remained closed
during the summer of 2004. A plan to award repair bids in October
of 2004, with the goal of re-opening the pool for the summer of
2005 fell through when a manufacturer backed out of a verbal
promise to guarantee its product. Engineers then had to develop
alternate repair plans.

In January of 2005, the council accepted
an option calling for the installation of a Myrtha,
steel-reinforced PVC liner. Hopes were that repairs could be
completed in time to open the pool for a portion of the 2005 swim
season. But delays pushed back the awarding of construction bids
until April of 2005, and construction began in July.

Installation of the liner was completed
in late this fall, and water was put into the pools for testing.

Final completion of pool repairs is
expected this spring.

Besides the liner, pool repairs have
included mechanical repairs, the construction of a new retaining
wall, and new gutters. The Myrtha liner is guaranteed for 15
years.

Pool repairs were designed to bring pool
standards up to what city leaders thought the city was getting
when the original pool was built. The 2005 pool work does include
an $11,000 pad underneath the childrens pool area, which is
considered an improvement over the original pool design.

Casey's looks at June
opening

By Seth Schmidt

Early summer is the targeted opening
date for a new Caseys General Store in Tracy.

Right now, we are looking at
sometime in June, said Bill Walljasper, chief financial
officer for Caseys General Stores in Ankeny, Iowa.

Footings for the stores foundation
were dug in October, and the buildings outer shell was
erected in November.

Walljasper said that the Tracy
Caseys store would have about 2,700 square feet of space.
Fueling facilities would consist of a four-quads, he
said. Each of the stations 16 fuel dispensers will have
pay at the pump capability.

Like other Caseys, Walljasper said
that the new Tracy store will have about a 500-square foot food
area. Other merchandise, he indicated would include groceries,
health & personal care items, household supplies, beverages,
snacks, and basic automotive supplies. Walljasper said there is a
strong likelihood that the store will also offer
video rentals.

Store hours will be 6 a.m. to 11 p.m.,
seven days a week. A manager, assistant manager, and six to eight
other employees will staff the store. Typically, Walljasper said,
a manager will be hired six weeks to two months before a new
Caseys store opens. The manager, with help from a
supervisor, then hires the other employees.

The new Caseys convenience store
is being built on the far west end of Morgan Street, just off Hwy
14, east of the Dairy Queen and south of Salmon Motors.

Likes small towns

Walljasper said that the Caseys
company, which has 87 stores in Minnesota, likes to operate in
small towns. More than 50% of its approximately 1,300 stores in
nine states are in towns with less than 3,500 population. The
Tracy store, like virtually all Caseys stores, will be
corporate owned. Walljasper said that only 19 Caseys
nationwide are not company-owned, and that all new Caseys
stores are company owned.

Walljasper said he did not know what
Caseys total investment will be in Tracy. But he said that
a store the size of the one in Tracy usually costs about $1
million, including inventory. Land costs, he said, are the
biggest expense variable in starting a new Caseys.